News about a forthcoming meeting between North Korean leader Kim Jong Un and US President Donald Trump has lifted oil prices.
The proposed meeting, which is set to take place in May this year, has caused an upswing in Asian stock markets leading to a rise in oil prices.
Brent crude futures LCOc1 increased 18 cents, or 0.3%, to reach $63.79 per barrel, while US West Texas Intermediate (WTI) crude futures CLc1 climbed 12 cents, or 0.2%, to touch $60.24, according to Reuters.
The news related to the meeting was announced by South Korea’s national security chief after holding talks with White House officials.
The South Korean officials communicated Kim’s pledge to renounce nuclear or missile tests in future.
However, the rise in the prices of the futures has failed to halt their weekly declines of nearly 1% and 1.6%, respectively.
Traders attributed the weakness to rising production from the US C-OUT-T-EIA, which has increased by 23% since the middle of 2016, to 10.37 million barrels per day (bpd).
ANZ Bank was quoted by the news agency as saying: “The market continues to struggle to shake off an excess supply boosted by increased supply from a growing US shale patch.”
Boosted by shale drilling, the US holds second place in terms of crude production, with Russia leading at almost 11 million bpd.
ABN AMRO senior energy economist Hans van Cleef was quoted by the news agency as saying in a note to investors: “It seems only a matter of time before the US becomes the biggest oil producer in the world. The main question which keeps investors busy is when exactly this will be reached.”